BEIJING, November 9 (RIA Novosti) — The pricing formula for Russian gas supplies to China vie the "western route" pipeline will include a take-or-pay contractual obligation, Russia's Gazprom energy giant said Sunday.
"In particular, the document includes provisions on the delivery volumes and deadlines, the take-or-pay scheme, the border area where gas supplies will be transferred [to China]. The framework agreement outlines a schedule for future work on the sale contract, a technical agreement and an intergovernmental agreement on the 'western route'," the company said.
Alexei Miller and Zhou Jiping, who head respectively the Russian energy company Gazprom and China's CNPC, met in Beijing on Sunday to ink a framework deal that will see Russia supply China with its natural gas via the "western route" pipeline.
The western route, also known as the Altai pipeline, will connect fields in western Siberia with northwest China through Russia's Altai Republic.
In May, Gazprom signed a contract with CNPC to export 38 billion cubic meters of gas to China annually for a 30-year period via the eastern route, a 3,000-kilometer (1,860-mile) Power of Siberia pipeline, which will be used for the deliveries of Russian gas to China. It was launched on September 1, with deliveries due to start in 2018.
